Senior Citizen Saving Scheme (SCSS) is a post office saving scheme for senior citizens above the age of 60 years. Applicants older than 55 years but lesser than 60 years can also open Post Office Senior Citizen Saving Scheme if they have taken voluntary retirement or have retired on superannuation (subjected to terms and conditions). For amounts lesser than Rs. 1 lakh the payment can be done in cash. For amounts more than Rs. 1 lakh the payment can only be done via cheque. Let’s discuss the scheme in detail below:
A post office senior citizen saving scheme makes a good investment option for people who have retired as it offers an interest rate of 8.6% w.e.f October 01, 2019. Below are the important features of post office senior citizen savings scheme:
The scheme offers a steady source of income with one time investment of a fixed sum. However, the minimum limit of investment is Rs. 1000 and maximum is Rs. 15 lakhs.
Minimum Age Criteria for Post Office Senior Citizen Scheme: 60 years
Special Age Criterion: 55 years to 60 years in case of voluntary retirement or superannuation. Provided the account is opened within a month of receiving retirement benefits and the amount shall not exceed the retirement benefits.
The interest rate on the post office senior citizen scheme is decided by the Central govt. every year. Currently, it is 8.6% per annum (for October 01 to December 31, 2019)
Post Office Interest Rates Table 2019
|Post Office Senior Citizen Saving Scheme||Interest Rate|
|Public Provident Fund (PPF)||7.9% compounded annually|
|National Savings Certificate (NSC)||7.9% compounded annually but payable at maturity|
|Senior Citizen Savings Scheme (SCSS)||8.6% per annum from 31 March / 30 Sept / 31 December|
|Kisan Vikas Patra (KVP)||7.6% compounded yearly|
|Time Deposit Account (TD)||6.9% to 7.7% p.a. calculated quarterly|
|Post Office Recurring Deposit Account (RD)||7.2% per annum compounded quarterly|
|Post Office Monthly Income Scheme (MIS)||7.6% per year payable monthly|
|Sukanya Samriddhi Yojana (SSY)||8.4% per annum compounded annually|
|Post Office Savings Bank Account||4% per annum|
To make Investment in Post Office Senior Citizen Saving Scheme, the following documents need to be submitted by the applicants:-
Also, the Applicant’s Employer Certificate mentioning the retirement VRS or Superannuation needs to be submitted.
To make payment by cash the amount should be lesser than Rs. 1 lakh and if it is above Rs. 1 lakh then it possible to pay by cheque. Submit all the documents that are mentioned above.
Carefully fill the SCSS Account Opening form while providing the nominee details. Also, the original identity proof is required for verification purposes. Finally, get a witness signature and complete the procedure to get started.
In order to automate the scheme, it is required to have a saving bank account and place a request for automatic transfer of Senior Citizen Scheme interest to the RD account through the depositor’s Post Office Savings Account.
Online payment facility is only available for Post Office RD account through ECS or Electronic Clearing Service. Also, one can get the payment done from an agent through the post office agent portal and he can make the payment online on the behalf of the depositor.
It is better to check with the post office branch to seek clarity regarding the Post Office Senior Citizen Scheme online payment.
Hope the above information proves to be helpful in case you want to open an SSCS Account in the Post office. Below are some of the frequently asked questions that you can refer to.